Lexington outlines plan for new Government Center at former Truist Bank Building
LEXINGTON, Ky. (ABC36 NEWS NOW) – The City of Lexington is moving forward with plans to relocate its Government Center into the former Truist Bank Building at 200 West Vine Street, according to a fact sheet released by the Mayor’s Office.
The proposal, which is included in the Urban County Council Work Session packet for Tuesday, November 18, asks Council to authorize agreements that would form a public-private partnership to buy and redevelop the 1.767-acre property. According to the fact sheet, the site includes an eight-story office building, a new 286-space parking garage with public parking, and the air rights above part of that garage. Council approval will require two readings at upcoming meetings.
According to the fact sheet, Mayor Linda Gorton is the fifth mayor to take on the project of creating a new home for the Government Center. The current facility — a former hotel built in 1920 — was intended to be a temporary home when it was purchased in 1982. Since then, the city’s population has grown nearly 60%, and the government workforce has increased by almost 40%, yet the Government Center has remained unchanged, noted the fact sheet.
The fact sheet says several studies have confirmed that the existing building is no longer adequate. The city faces accessibility challenges, and the current Council Chamber is too small to meet community needs. Deferred maintenance and repairs on the building are estimated at $55 million, and that figure only covers basic upkeep and required code updates. It does not include improvements to efficiency or the public-facing environment. The document states that delaying a replacement will only increase the cost.
According to the fact sheet, the process to select a new site has been transparent and years in the making. Discussions about the need for a new Government Center have taken place publicly and repeatedly. The Mayor’s Office notes that the current site was chosen through a public bidding process that included representatives from both the administration and Council. Over the past 15 months, the selection committee has held more than 35 formal meetings.
Under the proposed partnership, the city would enter into a public-private partnership development agreement with the Lexington Opportunity Fund — whose primary partners include the Webb and Greer companies — or an affiliated entity. According to the fact sheet, Lexington will pay approximately $23.6 million for the real property, including the office building, the parking garage and the air rights. The purchase price was based on an independent appraisal, and the city will own the property once the deal closes.
The fact sheet indicates the city will also enter into a ground lease with the developers. After construction is complete, Lexington would lease the buildings for 35 years with projected annual payments of $3.5 million. The fact sheet notes that the lease amount is expected to remain constant and equals less than one percent of the city’s current annual General Fund revenue. At the end of the lease term, Lexington would own the entire project. The total redevelopment budget — including purchase, design, construction, site control and financing — is estimated at $86.6 million. Because the project is a P3 agreement, approval from the state’s Local Government P3 Board may be required before closing.
Plans for the site include a full rehabilitation of the 94,000-square-foot office building and construction of a 10,000-square-foot addition along Vine Street. According to the fact sheet, the addition would serve as a public front door with a large lobby, meeting rooms of various sizes and a modern council chamber capable of hosting larger crowds without overflow. Energy efficiency, accessibility and sustainability are listed as project priorities. The new Government Center is expected to open in 2028.
